To help buy her new condominium, Maria is taking out a $154,000 mortgage loan for 30 years at 3.7% annual interest. Her monthly payment for this loan is $708.84. Fill in all the blanks in the amortization schedule for the loan. Assume that each month is of a year. Round your answers to the nearest cent. 1 12 Payment number 1 2 1 140 Interest payment $0 1 $349.86 Principal payment $0 $ 1 $358.98 New loan balance $0 $153,531.26 I $113,108.33
To help buy her new condominium, Maria is taking out a $154,000 mortgage loan for 30 years at 3.7% annual interest. Her monthly payment for this loan is $708.84. Fill in all the blanks in the amortization schedule for the loan. Assume that each month is of a year. Round your answers to the nearest cent. 1 12 Payment number 1 2 1 140 Interest payment $0 1 $349.86 Principal payment $0 $ 1 $358.98 New loan balance $0 $153,531.26 I $113,108.33
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![### Mortgage Loan Amortization Example
To help buy her new condominium, Maria is taking out a $154,000 mortgage loan for 30 years at 3.7% annual interest. Her monthly payment for this loan is $708.84.
Fill in all the blanks in the amortization schedule for the loan. Assume that each month is \(\frac{1}{12}\) of a year. Round your answers to the nearest cent.
Below is the amortization schedule for the first few months and select points within the payment schedule:
| Payment Number | Interest Payment | Principal Payment | New Loan Balance |
|----------------|------------------|-------------------|-------------------|
| 1 | $ | $ | $ |
| 2 | $ | $ | $ 153,531.26 |
| ... | ... | ... | ... |
| 140 | $ 349.86 | $ 358.98 | $ 113,108.33 |
| 141 | $ | $ | $ |
Complete the table by calculating the interest payment and principal payment for each month, as well as the new loan balance at the start of each month.
#### How to Calculate Each Column:
1. **Interest Payment:**
\[
\text{Interest Payment} = \text{Remaining Loan Balance} \times \left( \frac{\text{Annual Interest Rate}}{12} \right)
\]
2. **Principal Payment:**
\[
\text{Principal Payment} = \text{Monthly Payment} - \text{Interest Payment}
\]
3. **New Loan Balance:**
\[
\text{New Loan Balance} = \text{Previous Loan Balance} - \text{Principal Payment}
\]
Follow these steps iteratively for each payment to complete the amortization schedule.
##### Example Calculation:
For the first payment:
1. Interest Payment:
\[
\text{Interest Payment} = 154,000 \times \left( \frac{3.7\%}{12} \right) = 154,000 \times 0.00308333 = \$474.83
\]
2. Principal Payment:
\[
\text{Principal Payment} = 708.84 - 474.83 = \$234.01
\]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fae063e21-e069-49f8-ad73-1d555b7f1041%2F6c24d0ae-e3ab-4bd0-878b-704ca1b4d15f%2Fadj9qpr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:### Mortgage Loan Amortization Example
To help buy her new condominium, Maria is taking out a $154,000 mortgage loan for 30 years at 3.7% annual interest. Her monthly payment for this loan is $708.84.
Fill in all the blanks in the amortization schedule for the loan. Assume that each month is \(\frac{1}{12}\) of a year. Round your answers to the nearest cent.
Below is the amortization schedule for the first few months and select points within the payment schedule:
| Payment Number | Interest Payment | Principal Payment | New Loan Balance |
|----------------|------------------|-------------------|-------------------|
| 1 | $ | $ | $ |
| 2 | $ | $ | $ 153,531.26 |
| ... | ... | ... | ... |
| 140 | $ 349.86 | $ 358.98 | $ 113,108.33 |
| 141 | $ | $ | $ |
Complete the table by calculating the interest payment and principal payment for each month, as well as the new loan balance at the start of each month.
#### How to Calculate Each Column:
1. **Interest Payment:**
\[
\text{Interest Payment} = \text{Remaining Loan Balance} \times \left( \frac{\text{Annual Interest Rate}}{12} \right)
\]
2. **Principal Payment:**
\[
\text{Principal Payment} = \text{Monthly Payment} - \text{Interest Payment}
\]
3. **New Loan Balance:**
\[
\text{New Loan Balance} = \text{Previous Loan Balance} - \text{Principal Payment}
\]
Follow these steps iteratively for each payment to complete the amortization schedule.
##### Example Calculation:
For the first payment:
1. Interest Payment:
\[
\text{Interest Payment} = 154,000 \times \left( \frac{3.7\%}{12} \right) = 154,000 \times 0.00308333 = \$474.83
\]
2. Principal Payment:
\[
\text{Principal Payment} = 708.84 - 474.83 = \$234.01
\]
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